• UGI USER
  • Jul 26, 2024
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CENTRE ACCELERATES FARMER-PRODUCER BODIES REGISTRATION

Why in the news?

  • The Indian government is on track to register 10,000 Farmer Producer Organizations (FPOs) by December 2024, two months ahead of the February 2025 deadline.
  • The initiative aims to strengthen farmers’ collective bargaining power and bridge the gap between wholesale and retail food prices by aggregating and processing primary produce

Current Progress

  • Nearly 9,000 FPOs have been registered so far under the initiative launched on February 29, 2020.
  • The government has proposed increasing the budget allocation for FPOs by 30% in 2024-25 to support their development.
  • Each FPO receives financial assistance of up to ₹5 lakh over three years, along with a matching equity grant and credit guarantee facilities.
Source:researchgate
UnderstandingFPOs

  • Definition: FPOs (Farmer Producer Organizations) are collectives of farmers aimed at improving their bargaining power and access to resources.
  • Purpose: They enable small, marginal, and landless farmers to collaborate for better access to technology, inputs, finance, and markets, enhancing their income.

Government Support

  • Scheme: The government has introduced the “Formation and Promotion of Farmer Producer Organizations (FPOs)” scheme to establish 10,000 new FPOs.
  • Support: The scheme includes dedicated resources and a strategic approach for effective promotion and development of FPOs.

Associated Article:

https://universalinstitutions.com/agents-of-prosperity/